Bitcoin and Ethereum Dip Nearly 8% Amid Russian-Ukraine Tension and Biden upcoming Crypto executive order.
The crypto market, especially digital currencies in the top 10 rankings, has not enjoyed most of the year, as they continue to shred a significant percentage of their value.
While cryptocurrencies seem to have been recovering from the spot where they bled from last month, recent developments in the global market have reopened their old wounds.
Crypto Market Dip
In an unfortunate turn of events for many cryptocurrency investors yesterday, Bitcoin and Ethereum suffered huge losses that have wiped off 7% and 6% of their value, respectively, in the last 24 hours.
Bitcoin, which was initially trading at nearly $44,000 yesterday, is currently changing hands around $40,700, while Ethereum declined from a 24-hour peak of $3,126 to $2,868.
Other cryptocurrencies like Binance Coin (BNB), Ripple (XRP), Cardano (ADA), Solana (SOL), Terra (LUNA), and Avalanche (AVAX), which are in the top ten spot of the world crypto ranking, also received a fair share of the dip.
Of the top ten cryptocurrencies, LUNA suffered a major loss of over 10% in the last 24 hours after falling from a 24-hour peak of $0.56 to $0.50.
Causes of the Recent Dip
The most recent crypto market dip comes on the heels of several global developments, including rising tensions between Russia and Ukraine, the upcoming cryptocurrency executive order, and the Federal Reserve’s proposed hike in inflation rates.
In the past week, the world has focused its attention on Europe, where there is news of a planned invasion by Russian forces on Ukraine territories.
Crypto Executive Order Incoming
Meanwhile, sources say a long-anticipated cryptocurrency executive order that would determine how cryptocurrencies are regulated in the United States is due to be published by next week.
The order is under development to mitigate the risks associated with cryptocurrencies, and it will see the White House task various financial agencies to develop a Central Bank Digital Currency (CBDC).
Russia Plans to Invade Ukraine
Sources, including President Joe Biden, have disclosed that Russia is building several troops around Ukraine, with all indications pointing to an imminent invasion.
Russia, in response, said the country will pull back some of her troops.
However, other sources noted that Russia increased the number of troops around the Ukraine border to over 150,000, prompting president Biden to suggest yesterday that the invasion will occur “within the next several days.”
In other developments, the Federal Reserve recently published minutes of its January meeting where it plans to increase interest rates next month in a bid to mitigate rising inflation in the United States.
Stock Markets Not Spared
Unfortunately for financial markets, president Biden’s comment of a planned European invasion and a proposed hike in interest rates sent the price of global assets.
While cryptocurrencies were affected, the stock market was not left out of the crash.
On Thursday, the S&P 500 suffered a decline in value of 2.1%, while the Nasdaq 100 dipped 2.9%. Similarly, other company stocks like Facebook’s Meta, Google’s Alphabet, and Microsoft dipped 4%, 3.8%, and 2.9%, respectively.
Traditional financial institutions, including Wells Fargo and Morgan Stanley, plummeted 3.4% and 5%, respectively.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
